Gold is trading around $5,142, around 61.8% of the Fibonacci retracement with a bullish bias. Gold is showing signs of exhaustion, which means a technical correction is likely to occur in the coming days.

In case of a technical correction towards the 21 SMA around $5,050, we could expect gold to resume its bullish cycle. In the short term, the instrument could reach the +1/8 Murray located at $5,317.

The 61.8% Finonacci retracement represents a continuation of the bearish cycle that might span from $5,600 to $4,400, so this level is likely to be a key point for bears to sell gold.

If the bullish cycle continues, we could expect gold to reach +1/8 Murray around $5,317 and could eventually rebound to its all-time high around $5,600.

Technically, the $5,160 zone represents a level for a technical reversal, so gold is expected to fall towards the psychological level of $5,000 in the coming days and could even reach the 200 EMA around $4,870.